The UAE insurance sector exhibited robust growth in the second quarter of 2024, as highlighted in the Quarterly Economic Review released by the Central Bank of the UAE (CBUAE) on Wednesday.
Gross written premiums surged by 31.2% year-on-year in the first half of 2024, reaching AED 35.7 billion. This increase was largely driven by substantial rises in property and liability insurance premiums (39.4% YoY), health insurance premiums (30.7% YoY), and premiums related to life insurance and fund accumulation (9.1% YoY).
Claims paid across all insurance plans also rose, climbing 34.0% YoY to AED 18.9 billion. This spike was particularly notable in property and liability insurance, which saw claims rise by 46.2% YoY, alongside a staggering 150% increase in claims for life and fund accumulation insurance.
Additionally, total technical provisions for the sector increased by 22.8% YoY, amounting to AED 94.2 billion. Invested assets in the insurance sector reached AED 78.7 billion, representing 50.8% of total assets, although this was a slight decline from 57.1% in the previous year.
Despite these fluctuations, the sector remains well-capitalized. The ratio of own funds to the Minimum Capital Requirement increased to 376% in H1 2024, up from 352.4% in the first half of 2023. However, profitability metrics showed a decline, with net profit to net written premiums dropping to 6% from 10.4% a year earlier.
Currently, the UAE is home to 59 licensed insurance companies, comprising 23 traditional companies, 10 takaful firms, and 25 branches of foreign insurers. The sector also employs 498 insurance-related professionals, indicating a thriving industry poised for further growth.
News Source: Emirates News Agency
